Case Law Details
Utkarsh Ispat LLP Vs State of Gujarat (Gujarat High Court)
Gujarat High Court held that as per CBIC circular dated 23.02.2021 provisionally attached movable property (including bank account) should be released when the taxable person offers any immovable property in lieu of the same.
Facts- Petitioner is a Limited Liability Partnership (LLP) and is engaged in the business of manufacture and supply of goods like M.S. Billets (i.e. Mild Steel Billets). Petitioner No.2 is one of the partner of the petitioner.
Aggrieved by the communication dated 16.07.2022 received from the 3rd respondent, whereby proposal of the petitioner to replace provisionally attached movable property in the form of Fixed Deposits and Current Bank Accounts is rejected on 16.07.2022. Hence, this petition has been preferred.
Conclusion- The CBIC issued the circular dated 23.02.2021 laying down the guidelines for provisional attachment of the property under Section 83 of the CGST Act. Guidelines No.3.4.6 provides that any movable property including bank account belonging to the taxable person when has been attached, the same can be released when the taxable person offers in lieu of it any other immovable property, if the same is sufficient to protect the interest of the revenue and such immovable property should be of the value not less than the tax amount in dispute. The same should be free from any charges, liens, mortgaged or encumbrance, the property’s tax also needs to be fully paid up and the same is not to be involved in any legal dispute. The original title deeds and other necessary information relating to the properties for the satisfaction of the concerned officer shall be produced before it by the taxable person.
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